Accountants Give Thumbs-Up on Finances
The Village of East Hampton got an upbeat report on its fiscal health last Thursday.
Michael Tomicich of the accounting firm Satty, Levine, and Ciacco told village trustees that he was able to deliver an unqualified, or clean, opinion, meaning that the village’s fiscal statements give a true and fair view in accordance with the reporting framework used in the preparation and presentation of statements.
In the fiscal year ending on July 31, revenues of $20.921 million exceeded budget projections by $1.285 million, with license and permit fees accounting for almost half the variance. At the same time, expenditures across a range of programs and services amounted to $612,000 less than anticipated.
The village’s balance sheet shows a total fund balance of $6,588,388, an increase of approximately $2.1 million from the prior year. The general fund budget issued $835,000 in principal payments on serial bonds to lower debt in coming years, Mr. Tomicich said. “The village,” he said, “is in very good shape.”
As a result of its fiscal health, the village was able to appropriate $337,000 to its capital reserves for any additional needed projects.
Becky Molinaro, the village administrator, recommended that the board consider appropriating $400,000 to $500,000 to a compensated reserve fund, which was established, but not funded, last year. Compensated absences at the end of the 2014-15 fiscal year amounted to $2.67 million, an increase of $52,663 from the prior year.
The compensated reserve fund, Ms. Molinaro told the board, is “a savings account to save money for employees who retire or resign, and any monies that they are entitled to at the time, per contract or condition of employment — any payouts, sick leave, vacation.” The board, she said, “can transfer money into that account at any time through a resolution. We could do it at the next board meeting.”
“Based on all of the above,” the mayor said, “it’s a good way to go.” The topic is to be considered at the board’s meeting tomorrow.
The board also heard from Drew Bennett, a consulting engineer, who delivered a presentation on proposed improvements to the police station. A review by the village’s insurance carrier had resulted in the recommendation that the areas where detainees are interviewed and held be upgraded, he said.
The present layout, Chief Gerard Larsen of the Police Department told the board, “lends itself to not be safe for our employees.”
“That was the reason that it was raised,” Ms. Molinaro said — “the potential liability for village employees and anyone who is detained by the Police Department.”
The approximately $90,000 project would add polycarbonate glass panels in the holding area “to improve the security of detainees as well as employees,” Mr. Bennett said, along with modifications to lighting, a resurfacing of the floors, new ceiling tiles, and additional furniture.
“We would like to minimize any potential liability,” Mayor Rickenbach said. “If there are no objections, we should conceptually opt to move ahead.”
The work session also included a discussion of limiting some parking spaces in the Reutershan and Barns Schenck municipal lots to 30 minutes. Most spaces have a designated two-hour limit. The mayor asked Richard Lawler, a trustee, to confer with Chief Larsen and Scott Fithian, the superintendent of public works, to determine the best location within each lot for 30-minute spaces, and present their findings to the board.